Qualcomm tops Magna’s bid with $ 4.6 billion bid for Veoneer – .

Qualcomm tops Magna’s bid with $ 4.6 billion bid for Veoneer – .

A Qualcomm sign is displayed outside one of the company’s many buildings in San Diego, California, United States, September 17, 2020. REUTERS / Mike Blake

Aug 5 (Reuters) – Chipmaker Qualcomm Inc (QCOM.O) said on Thursday it had offered to buy Swedish auto parts maker Veoneer Inc (VNE.N) for $ 4.6 billion, a premium of 18 , 4% compared to an offer in July from Canadian Magna International Inc (MG.TO) which was accepted by Veoneer’s board of directors.

U.S.-listed shares of Veoneer, a 2018 derivative of airbag and seat belt maker Autoliv (ALV.N), rose 28% as the scene was set for a bidding war.

Veoneer said its board of directors “will assess Qualcomm’s proposal in accordance with its legal obligations and the terms of the Magna merger agreement.”

Magna made no immediate comment.

Demand is on the rise for advanced driver assistance systems, known in the industry as ADAS, which add features ranging from collision warning to park assist. Some systems collect data from cameras and radars to monitor the surroundings, interpret the situation and take action.

Qualcomm, in addition to powering mobile phones, has been a supplier of chips to automakers for a decade and last year launched its own line of ADAS systems called Snapdragon Ride.

Earlier this year, it signed a collaboration agreement with Veoneer to develop a software-and-chip platform for driver assistance systems called Arriver.

“As the automotive industry continues to transform, it becomes increasingly important for automakers to have a partner who develops horizontal platforms that drive innovation and enable competition,” said Cristiano Amon, CEO by Qualcomm.

Autonomous vehicles are years away, but assisted driving features, such as adaptive cruise control, are being installed in new cars by most manufacturers.

“If Qualcomm is successful in convincing Veoneer’s shareholders to agree … Qualcomm will instantly see its current automotive business shift from its current focus to infotainment, telematics and instrument cluster to the ability to deliver ADAS solutions and more again, ”said Daniel Newman, analyst at Futurum Research. said in a comment sent by email.

Magna has a similar interest to Qualcomm in purchasing Veoneer as it tries to compete with ADAS makers such as Aptiv (APTV.N), Bosch (ROBSCJ.UL) and Continental (CONG.DE) to capture more much of the booming business.

Magna has offered to buy rival Veoneer for around $ 3.8 billion in cash.

Reporting by Chavi Mehta in Bengaluru and Supantha Mukherjee in Stockholm Writing by Supantha Mukherjee and Simon Johnson Editing by Elaine Hardcastle and Matthew Lewis

Our Standards: Thomson Reuters Trust Principles.


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